Retail stocks on perception improves, says FecomercioSP

Sao Paulo-the perception of entrepreneurs retailers in the metropolitan region of São Paulo towards their inventories showed improvement in February, shows research from the Federation of trade in goods, services and tourism of the State of São Paulo (FecomercioSP).
The Stocks index (IE), calculated by the institution, rose to 96.6 points in the month, from 90.8 points in January. The advance is 6.4%.
The high in February is mainly due to the high proportion of businessmen who claimed to be with the proper situation stocks, which rose from 45.3% in January to 48.2% in February.
In addition, there was a decrease in the share of retailers with stocks below the appropriate, 16.9% to 15.8%, and of those who claimed to have excess goods, from 37.6% to 35.7%.
According to FecomercioSP''s economic advice, the data suggest that entrepreneurs seem to have understood the gravity of the economic crisis, with falling consumption and increasing unemployment, which should intensify in the first quarter of the year.
The institution does not expect a recovery of the economy in 2016 and says, now, the trend is that retailers be able to adjust to the new reality.
It is expected that in the coming months, excess inventory is eliminated, not as a result of the resumption of sales, but the reduction of new orders, already perceived at retail.
Despite the improvement in de passage for February, the indicator presents fall when compared to February 2015, result of 106.9 points. The indentation, in this case, is 9.6%.
Methodology
IE is determined monthly by FecomercioSP through the interview with approximately of 600 businessmen and trade ranges from 0 (total inadequacy) 200 points (fitness), being the mark of 100 points the boundary between unsuitability and suitability.
The analysis of the numbers, it is possible to identify whether entrepreneurs are feeling of stocks "above", i.e. with excess goods, or "below", i.e. lack of available items to meet the demand in the short term.